Option Investor


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Hi Gang,

Looks like the market is going to open lower this morning (Monday). Don't necessarily dive blindly into the positions suggested in yesterday's posting. If things move significantly lower, you might want to adjust the OEX put spread down a strike or two. Sometimes, after gap openings, the market snaps right back -- and sometimes it doesn't. Keep in mind that the market is presently in a downward trend. Use your discretion and be careful.

I mentioned the Options Industry Council in previous columns. They're an organization that was created to generate interest in options trading. Don't worry, they're not going to try and sell you anything. They're just a good source of information regarding anything options related.

When I returned, I noticed that they will be hosting a free webinar on Tuesday discussing credit spreads -- the type we often use at the CPTI. You might want to check it out. It's only a half hour. I don't know how much or how little can be covered in a half hour, but the price is right -- FREE. I spend hours going over this material at my CPTI seminars -- giving many examples and finding trades based on real market prices, etc. After the seminar, if you have additional questions, send them along to me.

Below is a copy of the email I received.

Trade smart and have a great day!


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Don't miss OIC's Trading Spreads webinar, this Tuesday, August 30, 2005 at 3:30pm CT.

OIC Instructor Marty Kearney of the Chicago Board Options Exchange will discuss the credit spread, a limited risk option strategy. The credit spread is usually done by selling an out-of-the-money option and buying one further out-of-the-money. These can be call credit spreads or put credit spreads. Some aggressive investors who think the underlying is not going to move much, do both! This is referred to as an "Iron Condor" or an "Iron Butterfly," which will also be discussed. Check out this half hour webcast seminar to learn more. A Q/A session will follow the webinar.

Attendance is limited, so we encourage you to register for the OIC webinar as soon as possible by clicking here. You will need to register as a user of CBOE's web site to log in and register for the webinar. Once registered, you will be provided with full instructions on how to attend the webinar.

Be sure to visit OIC at www.888options.com for more options trading education and resources.

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